Cycurion's 1-for-8 Reverse Split Takes Effect Friday While Its Nasdaq Delisting Appeal Is Still Live

by Jonas Halvorsen · August 28, 2026

Companies Reporter, The MicroCap Herald

Cycurion Inc.'s 1-for-8 reverse stock split takes effect on Friday, Aug. 28, reducing shares outstanding from approximately 25,840,335 to approximately 3,230,041, according to StockTitan's report of the McLean, Virginia cybersecurity company's Aug. 26 announcement. The consolidation lands while the company's appeal of a Nasdaq delisting determination remains unresolved.

The announcement says split-adjusted trading begins at the market open on Aug. 28 and that the shares carry a new CUSIP, 95758L404. The stated purpose is that the split is "intended to, among other things, assist the Company in maintaining compliance with the minimum bid price requirement for continued listing."

Mechanics

No fractional shares will be issued. Holders left with a fractional interest receive a cash payment, without interest and subject to applicable withholding, equal to that fractional interest multiplied by the closing price on the trading day immediately preceding the effective date.

Proportionate adjustments will be made to outstanding warrants, stock options, restricted stock awards and convertible securities, including to their share counts and their exercise or conversion prices. That is standard, and it is worth stating plainly what it means: the split rescales those instruments rather than retiring them. The potential dilution they represent is divided by eight alongside everything else, not removed.

The compliance backdrop

In a release dated July 16, Cycurion said it had received a delisting determination letter from The Nasdaq Stock Market LLC dated July 10, 2026, after the closing bid price of its common stock stayed below the $1.00 per share minimum for 31 consecutive business days running from May 26 through July 9. That release identified Nasdaq Listing Rule 5550(a)(1), which it described as requiring listed securities to maintain a minimum bid price of $1.00 per share.

That 31-day count is the window that establishes the deficiency, not a period granted to cure it, and it is consistent with a bid-price shortfall measured over consecutive business days. What the release does not explain is why the shortfall produced a delisting determination outright rather than the compliance period Nasdaq's rules provide for certain continued listing deficiencies. This desk was not able to retrieve the underlying Nasdaq correspondence or the company's filings with the Securities and Exchange Commission, so that question is left open rather than answered here.

The same July 16 release said trading in the company's securities was expected to be suspended at the opening of business on July 21, that the company planned to request a hearing before the Nasdaq Hearings Panel by the July 17 deadline, and that a timely hearing request "will stay the suspension of the Company's securities and the filing of a Form 25-NSE pending the Panel's decision." Kevin Kelly, the company's chairman and chief executive, was quoted saying Cycurion was "fully prepared to proceed with the Nasdaq Hearings Panel process."

A follow-up release on July 22 confirmed that outcome, stating that "the Company's hearing request has stayed any suspension or delisting action pending the hearing and the expiration of any extension period that may be granted by the Panel following the hearing," and that a hearing was expected to take place in August 2026. No specific hearing date was given in that announcement, and neither release the Herald reviewed reports a Panel decision.

The direction of these actions is worth setting out precisely: the delisting determination was issued by Nasdaq against the company's listing, and the appeal is the company's own. Nothing in the releases attributes any adverse finding to an individual.

An unreconciled detail

The two sets of announcements do not describe the listing the same way. The Aug. 26 split announcement places the common stock on The Nasdaq Global Market, and says split-adjusted trading begins there. The July 22 release states that the stock trades on The Nasdaq Capital Market, which is the tier governed by the Rule 5550 series the July 16 release cited. The Herald could not reconcile the two descriptions from the press releases alone and has not reviewed the company's filings, so both are reported as the company stated them.

The business, and its scale

On July 30 Cycurion announced what it called the largest contract in its history: an award of approximately $54.6 million over a 10-year term, working as a partner to what it described as a "top-5 global consulting firm" on a Health and Human Services system for a state government agency, with expected annual revenue exceeding $5 million and revenue beginning in November 2026. Those figures are the company's own, and the release carries forward-looking-statement language citing risks including "customer performance and satisfaction, contract modifications, and delays."

Market-size figures for Cycurion are available to this desk only from secondary digests rather than filings, and they diverge. In an item dated July 30, GuruFocus put the company's market capitalisation at approximately $5 million, alongside a trailing-twelve-month operating margin of -103.61 percent and trailing earnings per share of -7.51. The StockTitan page carrying the Aug. 26 split announcement displays a market capitalisation of $16.10 million for the Aug. 26 session. The Herald has not verified either figure against a filing and does not assert where the company's market value stands.

A second listing standard turns on that measure. On July 22, 2026 the SEC approved a new Nasdaq continued-listing requirement, adopted as Rules 5450(a)(3) and 5550(a)(6), obliging listed companies to maintain a market value of listed securities of at least $5 million. Because that measure is the consolidated closing bid price multiplied by the number of listed shares, a reverse split — which multiplies the price and divides the share count by the same ratio — does not by itself change it. That is this desk's arithmetic, not a characterisation drawn from the order. Friday's consolidation addresses the bid-price requirement; it is not a remedy for the market-value requirement.

The Herald is not reporting any Aug. 28 price for Cycurion. The United States session was open at publication and the split-adjusted shares had no closing level for the day. This article is based on the company press releases and the SEC order cited below; the underlying SEC filings were not obtained.